Chinese automaker DongFeng, Volvo team up to produce trucks

Chinese automaker DongFeng and Volvo have signed an agreement to establish a joint venture to produce new commercial vehicles, the ZhengQuanRiBao newspaper reported on Jan. 28.

Under the deal struck in Beijing on Jan. 26, the two automakers will produce trucks, the report said.

According to the agreement, Volvo will invest 5.6 billion yuan and take up 45 percent of the stake, while DongFend will input 6.9 billion yuan for production lines and own the remaining 55 percent.

The joint venture with its headquarters in central China's Hubei Province will produce large and medium-sized trucks, buses, transmissions and engines.

By Josephine Liu Yan Yee

Park Sae-jin swatchsjp@ajunews.com